Detroit Pension Boards Challenge EFM Law
DETROIT (WWJ) – Detroit’s two pension boards believe the state’s new Emergency Financial Manager Law is unconstitutional and they are challenging it.
The 30-page lawsuit was filed Monday in U.S. District Court in Detroit.
The city claims the new law gives Emergency Financial Managers “czar-like powers” and would wipe out collective bargaining rights of city employees worried about their pensions.
A spokesman for Governor Rick Snyder said the Governor believes in the constitutionality of the law otherwise he would not have signed it.